What are the causes of diminishing income disparities in Latin America and how has economic performance been affected:: By evidence from Mexico and Brazil.
Author
Kjær, Morten
Term
4. term
Publication year
2015
Submitted on
2015-10-01
Pages
91
Abstract
Dette speciale undersøger, hvordan høj ulighed spiller en rolle, og hvordan mindskede indkomstforskelle i Mexico og Brasilien har påvirket deres økonomier. Det ser på betydningen af uddannelse (humankapital) og kontante overførsler (offentlige ydelser, ofte målrettet lavindkomsthusholdninger). Begge lande udbyggede uddannelsesindsatsen og indførte lignende overførsler, men i meget forskellige makroøkonomiske rammer. Mexico har været meget åbent for international handel, mens Brasilien har fulgt en mere indenlandsk orienteret strategi. Studiet finder to hovedkræfter bag den faldende ulighed i begge lande: et lavere skill premium – altså den lønfordel, højtuddannede har over mindre uddannede – og mere progressive offentlige overførsler, som i højere grad tilfalder de fattigste. Indkomstskatter spiller en lille rolle i begge lande, så forskellen mellem indkomst før og efter skat har haft begrænset betydning for omfordelingen. Vækstmæssigt fastholdt Brasilien relativt høje rater i den undersøgte periode, mens Mexicos vækst var langsommere og blev hårdere ramt af den globale finanskrise, især på grund af landets eksponering mod verdensmarkederne og tætte handelsbånd til USA, hvor krisen dæmpede importen. Ændringer i skill premium og overførsler bidrog til at reducere fattigdom i begge lande fra 1996 til 2006, hvorefter effekten igen blev negativ i Mexico. Overordnet adskiller Brasiliens indadrettede vækststrategi sig fra Mexicos udadrettede, og i Mexicos tilfælde rejser det spørgsmål om inklusion: mange nye job skabes i den uformelle eller traditionelle økonomi, et mønster som nogle forfattere beskriver som en dualøkonomi.
This thesis explores how high inequality matters and how the narrowing of income gaps in Mexico and Brazil has influenced their economies. It examines the roles of education (human capital) and cash transfer programs (government payments often targeted to low-income households). Both countries expanded schooling and implemented similar transfers, but under very different macroeconomic settings. Mexico has been highly open to international trade, while Brazil pursued a more domestically oriented strategy. The study finds two main drivers of falling inequality in both countries: a lower skill premium—the wage advantage of highly educated workers over less-educated workers—and more progressive government transfers that direct more support to poorer households. Income taxes play a small role in both countries, so differences between pre-tax and post-tax incomes have had limited effects on redistribution. In terms of growth, Brazil maintained relatively high rates over the period studied, whereas Mexico’s growth was slower and suffered more during the global financial crisis, largely because of its exposure to world markets and close trade ties to the United States, where the crisis depressed imports. Changes in the skill premium and transfers helped reduce poverty in both countries from 1996 until 2006, after which the effect turned negative in Mexico. Overall, Brazil’s inward-looking growth approach contrasts with Mexico’s outward orientation, and in Mexico this has raised concerns about inclusiveness: many new jobs have been created in the informal or traditional sector, a pattern some authors describe as a dual economy.
[This abstract was generated with the help of AI]
Keywords
inequality ; growth ; distribution ; income ; brazil ; mexico ; latin america